As the annual output value of curtain fabrics approaches 70 billion yuan, a cluster's transformation determination surfaces. On August 12, the 2026 Annual Meeting of the Home Textile Association's Fabric Branch was held in Keqiao, Shaoxing, signaling a clear shift: the home textile fabric industry is moving from 'scale expansion' to 'value growth.' For buyers and foreign trade companies, this is not just a slogan change but a recalibration of supply chain collaboration, product evaluation standards, and market layout logic.
Data Behind the Industrial Backdrop
Keqiao's industrial data provides a footnote to this transformation. According to public data, in 2025, China Light Textile City's transaction volume exceeded 440 billion yuan, with nearly 8,000 curtain fabric enterprises and an annual output value of about 70 billion yuan. Cross-border online transactions reached 800-900 million US dollars. These figures show Keqiao is a global supply center for curtain fabrics, but they also expose hidden concerns: numerous enterprises, low per-unit value, and heavy reliance on foreign trade. Zhu Xiaohong, president of the China Home Textile Association, reviewed the '14th Five-Year Plan' period, noting that exports showed a 'volume-up-price-down' trend in the first half of the year, compounded by real estate downturn and rising raw material costs, squeezing corporate profits. This implies that relying solely on volume is no longer sustainable; price competition is eroding the industry's foundation.
From Manufacturing to Solution Provider
The core judgment conveyed at the meeting is that the competitive dimension of home textile fabrics is upgrading from 'a piece of fabric' to 'a space.' Liang Pengcheng, vice president of the China National Textile and Apparel Council, emphasized that the industry must shift from manufacturing thinking to brand thinking, from single-product manufacturing to overall soft furnishing solution providers. This transformation directly affects the supply chain: fabric manufacturers must not only provide materials but also understand spatial aesthetics, sleep health, and smart interaction. Lin Shaowu, brand consultant at Tianyu New Materials, pointed out the pain point of product homogenization, suggesting a return to real home scenarios, such as developing temperature-controlled and antibacterial fabrics for the 300 million people with sleep disorders, paired with healing colors and layered textures. This means buyers will increasingly evaluate suppliers on design language and product matrix rather than just weight and price.
AI and Digitalization Reshaping Cost Structure
AI technology was repeatedly mentioned at this year's meeting, with concrete application directions worth attention. Ji Feng, associate professor at Donghua University, showcased textile digitalization achievements: dye databases and AI-based precise color matching to solve digital printing color differences, and CNN-based non-destructive fiber identification to replace traditional chemical testing. These technologies imply that sampling cycles and testing costs may be significantly reduced. Zhao Lu, global VP of Collov AI, proposed three applications of spatial AI: world models for space analysis and material replacement, saving hundreds of thousands in offline sampling and photo shoots; commercial soft furnishing as a priority track where AI-standardized solutions improve bidding competitiveness; and embodied intelligence for warehouse, sorting, and inspection within three years. For small and medium factories, this is not just an efficiency tool but a ticket to enter engineering markets previously dominated by large enterprises.
New Overseas Channels: Traffic and Industrial Cluster Integration
Globalization is no longer exclusive to leading enterprises. Zhang Xiaocun, partner at Modeng Media's home textile business, used data to show TikTok covers over 150 countries with 2 billion monthly active users, with Southeast Asia and Latin America leading growth in home categories. He proposed a 'Keqiao industrial cluster traceability livestream' model, turning factory scenes into content assets, combined with local influencers and immersive short videos, providing replicable cross-border strategies for fabric factories. This means foreign trade companies can leverage platform traffic dividends to directly connect Keqiao's supply chain advantages to overseas C-end consumers, bypassing traditional intermediaries. However, this requires rapid response capabilities, including building a three-tier product matrix (basic, functional, co-branded) and understanding aesthetic preferences in different markets.